3 Beer Stocks: What This Analyst Thinks Is Brewing
Portfolio Pulse from Priya Nigam
Analyst Michael Lavery of Piper Sandler initiated coverage on Molson Coors Beverage Co (TAP), Boston Beer Company Inc (SAM), and Constellation Brands, Inc. (STZ), with varying ratings. TAP received a Neutral rating with a $69 price target, SAM was rated Overweight with a $350 target, and STZ also Overweight with a $300 target. Lavery highlighted TAP's market share gain and potential for margin expansion despite ongoing strikes. SAM's growth is expected from Twisted Tea and Hard Dew, with optimism for gross margin expansion. STZ is seen to benefit from U.S. market share gains in Mexican imports and has invested significantly in R&D, aiming for higher operating margins.
March 22, 2024 | 3:33 pm
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NEUTRAL IMPACT
Molson Coors Beverage Co received a Neutral rating from Piper Sandler with a price target of $69. The company is expected to benefit from market share gains and margin expansion, despite potential disruptions from ongoing strikes.
The Neutral rating suggests a balanced outlook, with potential benefits from market share gains and margin expansion offset by the risks associated with ongoing strikes.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
POSITIVE IMPACT
Boston Beer Company Inc was rated Overweight by Piper Sandler with a price target of $350. Growth is expected from Twisted Tea and Hard Dew, with optimism for continued gross margin expansion.
The Overweight rating and high price target reflect the analyst's optimism about SAM's growth prospects, particularly from its product lines like Twisted Tea and Hard Dew, and expected gross margin expansion.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Constellation Brands, Inc. received an Overweight rating from Piper Sandler with a $300 price target. The company is expected to benefit from U.S. market share gains in Mexican imports and has a strong R&D investment, aiming for higher operating margins.
The Overweight rating and optimistic price target are based on STZ's long-term market share gains in the U.S., significant R&D investment, and the company's target for higher operating margins.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90